Price for the profit you want
Work backwards. Tell it your costs and the profit or margin you’re after, and it finds the Etsy price that gets you there after every fee, plus your break-even price.
The formula
order total = (fixed fees + costs + postage + profit) ÷ (1 − percentage fees)
Then the shipping you charge is taken off to leave the item price. In the US with no ads the percentage fees are 6.5% + 3% = 9.5%, and the fixed fees are the $0.20 listing and the $0.25 processing charge.
Why not just add 10%?
Fees are charged on the final price, including the fees you just added to it. Adding 9.5% on top falls a little short. Dividing by 0.905 lands exactly.
Offsite Ads
If a sale comes through an Offsite Ad, another 15% (or 12%) comes off the whole order. The second row shows what you’d make on that sale at your rounded price, and the price you’d need to hold your profit even then.